2 China gear firms get Centre’s nod

Aug 21, 2010 |

Reuters

New Delhi, Aug. 20: India has allowed two telecom firms to buy equipment from China’s Huawei and ZTE after the Chinese firms agreed to New Delhi’s tighter rules to address security concerns, sources said on Friday.

This year, India barred some mobile phone operators from placing orders with Huawei and ZTE on security concerns, resulting from its suspicion that Chinese equipment might have spying technology embedded to intercept sensitive conversations and government communications.

A source with direct knowledge said Tata Teleservices, which had applied for government approval to buy telecom gear from Huawei and ZTE, received the go ahead after the Chinese firms accepted all the conditions set by India.

“They (Huawei and ZTE) have said they agree with all the new terms and conditions, after which the government cleared applications,” the source said.

In July, India tightened rules for telecom gear im-ports, saying vendors must allow inspection of their equipment and share design and source codes in escrow accounts.

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